Exer I read produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that ExerTread could use all of its available machine hours producing either model. The two models are processed through the same production department.

View the data.

What product mix will maximize operating income? $($Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.$)$

Prepare the product mix analysis.

ExerTread

Product Mix Analysis